Hardware FixRecommendedDevice not working? Your driver may be the problemCheck updates for common hardware issues.Fix DriversOctober DealsAmazon USOctober deal check: compare before you payAmazon US: current deals, useful picks and tech finds.Check DealsWindows FixRecommendedWindows errors stealing your time? Find the fix fastScan stability, cleanup and performance issues.Fix Now×
Skip to content
The Finance Base
The Money Desk · Blog
Re:

The US Government Is Still Spending Big on Climate—But the Numbers Need Context

Federal climate-related support remains substantial in selected programs, but budget authority, obligations, payments and tax breaks are not interchangeable—and some funding has been rescinded or canceled.
From TheFinanceBase Team4 min to read
Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Yes: federal climate-related funding remains substantial, but it has been cut, canceled, and delayed in important programs. There is no single current total that captures all of it. Budget authority, obligations, cash disbursements, and tax breaks are different measures—and the Government Accountability Office (GAO) reports cited here cover selected agencies and specific periods, not every federal climate program.

What does “spending” mean in these reports?

Federal funding moves through distinct stages. Budget authority is permission to incur obligations, usually provided by Congress. An obligation is a commitment to pay, such as an awarded grant. A disbursement or expenditure is money actually paid out. A rescission removes budget authority that has not been used. Tax credits and deductions work differently: they reduce revenue the government collects rather than pay out grant money.

These distinctions explain why a large appropriation or obligation total does not mean the same amount has already reached recipients or been spent.

How much funding is in the selected-agency reviews?

GAO’s July 22, 2026 review reported a combined $629 billion in Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA) budget authority for fiscal years 2022–2025 across EPA, the Department of Transportation (DOT), the Department of the Interior, and the National Telecommunications and Information Administration (NTIA). This is funding in those agencies and laws within GAO’s scope—not a government-wide total of climate spending, and not a measure of cash already paid out.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Funding in GAO’s July 2026 review Reported status
IIJA funding provided to EPA, DOT, Interior, and NTIA: approximately $574.7 billion For FY2022–2025, the four agencies obligated about 76% and disbursed about 54% of obligated funds.
IRA funding provided to EPA, Interior, and DOT: approximately $53.7 billion For FY2022–2025, the three agencies obligated about 72% and disbursed about 60% of obligated funds. Congress rescinded $6.4 billion of their unobligated IRA funds in July 2025.

These figures describe different laws and agency groupings in the report; they should not be treated as a complete ledger or as money all devoted exclusively to climate. See GAO’s July 2026 IIJA and IRA funding-status review for its scope and methodology.

What happened to the grants under review?

Across EPA, Interior, DOT, and NTIA, agencies reported approximately 9,500 reviewed awards approved, worth $128 billion; about 800 awards canceled, worth $17.8 billion; and more than 2,500 awards worth $33.6 billion pending decisions. The status figures were reported on varying dates, and GAO noted that EPA and NTIA did not provide all requested review data. They are not a single-date count of every federal climate award.

Approval, cancellation, and pending status describe award disposition, not cash paid out. The figures also should not be added to the budget-authority totals: they concern selected awards within the review, rather than a separate pot of money. Details are in GAO’s review.

Why EPA’s funding illustrates the difference between commitments and payments

The IRA provided about $41.5 billion in supplemental EPA appropriations for grants and other investments intended to reduce air pollution and enhance climate resilience. In 2025, EPA terminated grants funded by $30 billion; several recipients were challenging those terminations in court as of June 2026.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

For approximately $11.5 billion outside those terminations and related litigation, EPA had obligated about $10.2 billion and expended about $686 million as of March 2026. “Expended” is the cash-outflow measure here; the larger obligation figure records commitments, not payments already made. The amounts and status are reported in GAO’s July 2026 EPA oversight report.

What do DOE and USDA add?

A separate GAO report published September 17, 2026, examined the Department of Energy (DOE) and the Department of Agriculture (USDA). Together, the departments received $134.3 billion in IIJA and IRA budget authority available for all or part of FY2022–2025. GAO reported obligations of $32.2 billion from USDA’s $37 billion not later rescinded, and $51 billion from DOE’s $78 billion not later rescinded.

DOE reported that 381 awards worth $19.6 billion were approved to continue and 155 worth $9.1 billion were canceled. GAO found USDA’s award-level data insufficient to establish the status of every reviewed award. Those limitations matter: obligations and award decisions do not establish how much has been disbursed. See GAO’s USDA and DOE funding-status report.

How tax credits fit—and why they are not grant spending

The IRA created 21 energy tax expenditures: 20 credits and one deduction. Citing Joint Committee on Taxation estimates, GAO said they could reduce revenue collected by at least $200 billion over 2022–2031. This is an estimated revenue effect across that period, not a grant appropriation, obligation, or cash disbursement. It belongs in a broader account of federal climate support, but should be kept separate from agency outlays. The estimate is discussed in GAO’s May 2025 report on energy-related tax expenditures.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

What did GAO find about EPA’s Community Change Grants?

On October 7, 2026, GAO found that EPA violated the Impoundment Control Act (ICA) in its handling of the Community Change Grants (CCG) Program. EPA had originally received $2.8 billion for grants and $200 million for technical assistance, and had obligated more than $1.5 billion for CCGs before terminating the program.

GAO said EPA withheld funds from expenditure after deciding to terminate the program and withheld funds from obligation through grant terminations without sending a special message to Congress. In GAO’s words: “The ICA was enacted to ensure that legislation passed by Congress and signed by the President is faithfully executed.” The decision addresses the ICA issue; GAO said ongoing litigation remained and did not decide constitutional or Administrative Procedure Act claims. Read the GAO decision on Community Change Grants and the Impoundment Control Act.

What the figures mean for taxpayers

The strongest supported conclusion is not that every dollar in the cited totals has been spent, nor that all federal climate funding has stopped. Large amounts of funding and commitments remained in selected agency programs, while rescissions, terminated grants, pending reviews, and delays changed what could still be paid and when. For a taxpayer, these reports describe public budget decisions and program administration; they do not establish the effect on any one household’s taxes or benefits.

To compare claims about federal climate spending, check four things: which law and agencies are counted, the funding stage being measured, the reporting cutoff date, and whether the figure is actual outlay or an estimated tax-revenue effect. GAO’s reports provide snapshots; funding conditions and litigation can change after publication.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Leave a Reply

Your email address will not be published. Required fields are marked *

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

More post from the Money Desk

  1. The Money DeskBlogTheFinanceBase09 OCT 267 minMortgage Escrow FAQs: Taxes, Insurance, Shortages, and Refunds
  2. The Money DeskBlogTheFinanceBase09 OCT 265 minHow Mortgage Escrow Accounts Work and What Homeowners Pay For
  3. The Money DeskBlogTheFinanceBase09 OCT 265 minHow to Read a Stock Chart, Volume and Market-Cap Data
Recommended PC Tool
Recommended PC Tool
Outdated Drivers Are Slowing You DownFree scan - exact matches
Windows Errors? Fix Them Before They SpreadFree repair scan

Two free Windows tools

One Free Minute Could Fix That PC

Before you go - each of these free tools takes about a minute and tackles what quietly slows a Windows PC down.

Special offer. View Outbyte info, uninstall instructions, EULA, and Privacy Policy.